UPDATE: Campbell Soup Posts In-Line Q2 Earnings

reported in-line earnings for the fiscal second quarter. The Camden, New Jersey-based company posted a quarterly profit of $312 million, or $0.66 per share, versus a year-ago profit of $361 million, or $0.74 per share. Its sales slipped 2% to $2.23 billion. However, analysts were expecting a profit of $0.66 per share on revenue of $2.23 billion. Sales for U.S. Simple Meals segment slipped 3% to $867 million in the quarter, while International Simple Meals and Beverages sales dropped 9% to $194 million. U.S. Beverages sales fell 4% in the quarter to $169 million, while sales for Bolthouse and Foodservice segment gained 1% to $364 million. Gross margin shrank 3.1 percentage points to 32.6% in the quarter. Adjusted EBIT dropped 17% to $312 million in the quarter. Campbell's President and Chief Executive Officer Denise Morrison said, "Our second-quarter organic sales were comparable to the year-ago period. Adjusted EBIT declined by double digits, reflecting disappointing gross margin performance in the quarter, and was below our expectations. Looking at the first half, we were encouraged by our 2 percent organic sales growth in a difficult operating environment. For the half, four of our five reporting segments achieved organic sales growth." For 2015, Campbell Soup projects adjusted earnings of $2.32 to $2.38 per share. Analysts had expected earnings of $2.39 per share. Campbell Soup shares rose 0.02% to close at $47.22 yesterday.